An administrative law judge (ALJ) who favorably decides a claim(s) or
post-entitlement action(s) has the authority to approve or disapprove a
fee agreement. An ALJ takes no action on a fee agreement when issuing an
unfavorable decision or dismissal order. For general policy related to fee
agreements, see Hearings, Appeals and Litigation Law (HALLEX) manual
I-1-2-11. If a fully favorable
decision is issued by an attorney advisor (see
20 CFR 404.942
and 416.1442),
the attorney advisor has the authority to approve or disapprove the fee
agreement.

NOTE:

Except in very unusual circumstances, a decision maker will act on a fee
agreement at the same time he or she issues a decision. However, should a
situation arise where the decision maker who has the authority to approve
or disapprove a fee agreement did not act on the fee agreement at the time
of the decision, and the decision maker is now unavailable for 30 or more
days, the Hearing Office Chief Administrative Law Judge (HOCALJ) will act
on the fee agreement, or delegate that responsibility to another ALJ, to
avoid inordinate delays in processing fee related actions.

There are some circumstances when action on or the fee authorized under a
fee agreement may change, including the following:

If the claimant or representative requests administrative review of the
approval or disapproval of the fee agreement, see HALLEX
I-1-2-42.

If an effectuating component requests administrative review of the
approval of a fee agreement, see HALLEX
I-1-2-49.

If the claimant or representative requests administrative review of the
fee amount authorized under the fee agreement process, see HALLEX
I-1-2-44.

If the Appeals Council (AC) issues a decision after taking own motion
review of a hearing level decision, see HALLEX
I-1-2-6 C below and
I-1-2-11.

If the claimant appeals a fully or partially favorable decision, see
HALLEX I-1-2-14.

Under the fee petition process, the ALJ who issued the final decision or
dismissal order generally reviews the fee petition and issues the fee
authorization, except when the AC takes the last administrative action on
the claim (see NOTE below). If a fully favorable decision was issued by an
attorney advisor (see
20 CFR 404.942
and 416.1442),
the attorney advisor generally reviews any submitted fee petition and
issues the initial fee authorization. When the decision maker is
unavailable for 30 days or more, the HOCALJ will review the fee petition
and issue the initial fee authorization, or delegate that responsibility
to another ALJ, to avoid inordinate delays in processing fee petitions.

NOTE:

When the AC denies a request for review, it is considered “the last
administrative action” for fee petition jurisdiction purposes. If
the AC selects a case for possible own motion review but then declines to
take own motion review, the hearing level decision maker will evaluate any
submitted fee petition.

The decision maker must deny a request for a fee if the representative's
fee contract is contingent on a favorable outcome and the outcome was
ultimately unfavorable. For more information, see HALLEX
I-1-2-51.

The initial authorizer may authorize a fee up to and including $10,000.00.
If, after reviewing the fee petition, the initial authorizer believes a
fee of more than $10,000.00 is warranted, he or she will recommend a fee
amount to a designated authorizing official, as shown in the chart below.
In establishing whether the $10,000.00 limit applies, the determinative
factor is the fee amount(s) the initial authorizer is recommending, not
the amount the representative(s) requested.

When multiple representatives request fees for the same case, the initial
authorizer will issue a fee authorization for each fee petition filed,
unless the cumulative total of the fees authorized would exceed
$10,000.00. If the cumulative total exceeds that amount, the initial
authorizer will recommend a fee for each fee request to the designated
authorizing official identified in the chart below, and the designated
authorizing official will be responsible for authorizing any fees. The
designated authorizing official is not bound by the initial authorizer's
recommendation.

When a recommending official recommends a fee greater than $10,000.00, the
designated authorizing official is as follows:

Recommending Official

Designated Authorizing Official

Attorney Advisor, ALJ, or HOCALJ

Regional Chief Administrative Law Judge (RCALJ)

RCALJ

Deputy Chief ALJ

Deputy Chief ALJ

Chief ALJ

There are some circumstances when an authorized fee, based on a fee
petition, may change. For example:

The claimant, any affected auxiliary beneficiary(ies), or the
representative requests administrative review of the fee authorization.
See HALLEX I-1-2-61. See also
20 CFR
404.1720(d) and
416.1520(d).

An effectuating component identifies a technical or administrative error
that prevents direct payment of the authorized fee and refers the matter
to the initial authorizer for correction. See POMS
GN
03930.060 C.

The initial authorizer or other hearing office staff identifies a
technical or administrative error in the fee authorization that requires
correction, and, within a reasonable timeframe, the initial authorizer
rescinds and revises the fee authorization.

When the AC exercises its authority to issue a decision, the A member
administrative appeals judge (AAJ) who favorably decides the claim(s) or
post-entitlement action(s) will approve or disapprove a fee agreement. The
AC takes no action on a fee agreement when it is denying review or issuing
a remand, unfavorable decision, or dismissal order.

NOTE 1:

If the AC is issuing an unfavorable decision after reviewing a favorable
ALJ decision in which a fee agreement was approved, see HALLEX
I-1-2-14.

Of particular note, many fee agreements are tiered at the AC level (i.e.,
the fee agreement limits its application through a certain point in the
administrative process). When a tiered fee agreement applies, in addition
to the usual considerations, the AC will also consider the instructions in
HALLEX I-1-2-15 in determining
whether to approve the fee agreement.

NOTE 2:

As stated in HALLEX I-1-2-11,
the AC will act on a fee agreement when it exercises its authority to
issue a favorable decision after taking own motion review of a hearing
level decision. This applies even if the AC limits review through the date
of the hearing level decision, the hearing level decision maker approved a
fee agreement, and the fee agreement approval was correct at the time of
the hearing level decision. When the AC issues a decision, a revised fee
action is necessary because there may have been a material change in
circumstance as of the date of the revised AC decision (e.g., a tiered fee
agreement that does not apply if the case was reviewed by the AC). For
more information about own motion review by the AC, see HALLEX
I-3-6-1.

If the claimant or the representative requests administrative review of
the approval or disapproval of the fee agreement, see HALLEX
I-1-2-42. If the claimant,
affected auxiliary beneficiary(ies) (title II), eligible spouse (title
XVI), representative, or decision maker requests administrative review of
the fee amount authorized under the fee agreement process, see HALLEX
I-1-2-44.

When a representative requests a fee using the fee petition process, and
the AC issued the final decision or took the last administrative action in
the case, staff in the Attorney Fee Branch (AFB) in the Office of
Appellate Operations (OAO) will review the fee request and make a
recommendation. A designated individual then authorizes a fee after
reviewing the recommendation. There are no authorization limits for the
initial authorizer at the AC level.

If the claimant, any affected auxiliary beneficiary(ies), or the
representative requests administrative review of the initial fee
authorization under
20 CFR
404.1720(d) and
416.1520(d),
see the instructions in HALLEX
I-1-2-61. If an effectuating
component, OAO staff, or AC member identifies a technical or
administrative error in the fee authorization that prevents payment of the
authorized fee or otherwise requires correction, within a reasonable
timeframe, the AC will rescind and revise its fee authorization.

When a court issues a favorable decision for a claimant, the AFB in OAO is
responsible for reviewing a representative's request for a fee for
administrative services before the Social Security Administration (SSA).
For detailed information about representative fees for services provided
in court proceedings, see HALLEX
I-1-2-71.

If an ALJ issues the final decision of the Commissioner after court
remand, the ALJ reviews the fee petition, as explained above in HALLEX
I-1-2-6 B.2. If the AC issues
the final decision after court remand, the AFB will process the fee
petition, as explained above in HALLEX
I-1-2-6 C.2.

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